Accel’s Companies, a home improvement store chain, reported the following summarized figures:

Requirements
1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Accel’s Companies.
2. Is Accel’s ability to pay its liabilities strong or weak? Explain your reasoning.

Transcribed Image Text:

ACCEL'S COMPANIES Income Statement Years Ended May 31, 2024 and 2023 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 2024 $ 40,600 28,400 600 4,300 $ 7,300 2023 $ 40,500 30,600 570 8,200 $ 1,130